A review of the statement of financial position of Matvei Company revealed the following changes in the account balances: Required: 1.  For each of the above items, indicate whether it produces a cash inflow or a cash outflow. a. Increase in accounts receivable Cash outflow  b. Increase in retained earnings   c. Decrease in salaries payable   d. Increase in common shares   e. Decrease in inventory   f. Increase in accounts payable   g. Decrease in long-term debt   h. Increase in property, plant, and equipment   2.  Classify each change as a cash flow from operating activities (indirect method), a cash flow from investing activities, or a cash flow from financing activities. a. Increase in accounts receivable   b. Increase in retained earnings   c. Decrease in salaries payable   d. Increase in common shares   e. Decrease in inventory   f. Increase in accounts payable   g. Decrease in long-term debt   h. Increase in property, plant, and equipment

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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  1. A review of the statement of financial position of Matvei Company revealed the following changes in the account balances:

    Required:

    1.  For each of the above items, indicate whether it produces a cash inflow or a cash outflow.

    a. Increase in accounts receivable Cash outflow 
    b. Increase in retained earnings  
    c. Decrease in salaries payable  
    d. Increase in common shares  
    e. Decrease in inventory  
    f. Increase in accounts payable  
    g. Decrease in long-term debt  
    h. Increase in property, plant, and equipment  

    2.  Classify each change as a cash flow from operating activities (indirect method), a cash flow from investing activities, or a cash flow from financing activities.

    a. Increase in accounts receivable  
    b. Increase in retained earnings  
    c. Decrease in salaries payable  
    d. Increase in common shares  
    e. Decrease in inventory  
    f. Increase in accounts payable  
    g. Decrease in long-term debt  
    h. Increase in property, plant, and equipment  
  2.  
 
  •  
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